Automatic Exchange of Information | NatWest International

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Automatic Exchange of Information

International exchange of tax information, how it affects you and your bank

How we can help you

To combat tax evasion and avoidance, many governments now investigate where their citizens hold overseas assets. The Operational Tax Team at NatWest International supports the bank's compliance of a range of operational tax regulations, such as the US Foreign Account Tax Compliance Act (FATCA) and The Common Reporting Standard on Automatic Exchange of Information (CRS).

We also consider the broader response of the bank to these regulations and how we meet our obligations to them.

The Operational Tax Team doesn’t provide tax advice however if you have any doubts on your FATCA or CRS classification we will help you to understand the applicable legislation and guidelines. We recommend you contact a professional and independent tax advisor to discuss your tax classification.

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We recommend you contact a professional and independent tax adviser to discuss your personal tax situation, help you understand the international regulations and ensure you comply with them. We can't help you decide your tax status or guide you with filling in forms, as NatWest International does not offer tax advice, we can however offer guidance on the terms in the forms.

Common questions

What is Foreign Account Tax Compliance Act (FATCA)?

You may be aware that the USA was one of the first countries to legislate on global tax evasion and avoidance. This is now supported by governments around the World. FATCA aims to identify and report specified 'US persons' responsible for paying US tax, who hold accounts and/or investments outside the US.

 

It requires foreign financial institutions (i.e. those outside of the USA), such as NatWest International, to identify and report this information to the local tax authority, who in turn will report to the US Internal Revenue Service (IRS). Numerous countries around the world have entered into agreements with the US, and passed local legislation to enable and mandate compliance with FATCA.

What is the Common Reporting Standard (CRS)?

To enable the automatic exchange of tax information, the Organisation for Economic Co-operation and Development (OECD) has led the development of a global Common Reporting Standard (CRS). This agreement requires financial institutions (in participating areas) to identify customers who are tax resident in jurisdictions other than where their account is held.

 

The financial institutions must also report information about these customers to the relevant authority. For example, if a customer holds an account in England, but is tax resident in France, a report must be filed. To ensure we can comply with this legislation we implemented the appropriate policies and processes.

Why do I need to complete a tax status declaration (TSD)?

We’ve a legal requirement to identify customers’ tax residencies and tax statuses. This is because local tax authorities have signed international agreements to share information for tax reasons.

What is a Tax Identification Number (TIN)?

A Taxpayer Identification Number (TIN) is a generic term for the unique reference held for an individual or entity by Tax authorities. For example this might be your National Insurance number or Social Security Number for individuals. For entities, this might be your Employer Identification Number, Unique Business Reference or Corporation Tax Number. Other examples can be found via: Tax identification numbers (TINs) webpage

What is the difference between a passive and an active NFFE/NFE? (Entities only)

In general, a Passive NFFE/NFE are those whose income is at least 50% derived from passive income, for example, dividends, interest, rents and patent royalties (copyrights) and whose assets are mainly assets that generate such income. Passive NFFE/NFE is a non-financial entity that is not an Active NFFE/NFE.

 

An Active NFFE/NFE includes most trading entities such as: Building Companies, Retail Companies and Services Companies.

 

For more details please refer to our Foreign Account Tax Compliance Act and Common Reporting Standard sections.

How to contact us

We are here to help, however please be aware that NatWest International can't offer any tax advice. We recommend you contact a professional and independent tax advisor to discuss your personal tax situation.

Contact us
How to contact us

We are here to help, however please be aware that NatWest International can't offer any tax advice. We recommend you contact a professional and independent tax advisor to discuss your personal tax situation.

If you have any queries please contact your Relationship Manager on their dedicated number otherwise call Telephone Banking on:

 

Jersey

01534 282850

From abroad: +44 1534 282850

Guernsey

01481 703860

From abroad: +44 1481 703860

Isle of Man

01624 637190

From abroad: +44 1624 637190

Gibraltar

200 77737

From abroad: 00350 200 77737

 

Lines open Monday to Friday 7am - 7pm, Saturday 8am - 1pm, Sunday closed.

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